In 2024, the aerospace industry experienced a mixed economic performance. Companies like Howmet Aerospace reported strong earnings, driven by increased demand in the commercial aerospace market. Howmet’s stock nearly tripled over the past two years, reflecting robust growth.
Conversely, Boeing faced challenges, including a significant strike by factory workers, leading to reduced aircraft deliveries and impacting its financial performance.
These dynamics influenced valuation multiples across the sector.
Aerospace Valuation Multiples
This analysis examines public aerospace companies listed on U.S. exchanges, encompassing sectors such as spacecraft and satellites, aerospace and defense maintenance and services, aerospace research and development, aerospace transportation support systems, and rockets and subsystems.
These companies engage in activities ranging from manufacturing satellites and launch vehicles to providing maintenance services and developing advanced aerospace technologies.
An analysis of 58 public aerospace companies revealed a median revenue multiple of 1.6x, a median aerospace EBITDA multiples of 13.3x, and a median P/E multiple of 24.2x.
These multiples are influenced by factors such as increased demand for air travel, driving revenue growth, and supply chain disruptions, which have impacted profitability.
Additionally, geopolitical tensions have led to increased defense spending, benefiting companies in the defense segment.
Check out the airline industry multiples post here.
Aerospace Industry Landscape 2025
Looking ahead to 2025, the global demand for aerospace and defense products and services remains strong.
Challenges for these companies will be supply chain constraints and labor shortages, potentially affecting production schedules and profitability, which can affect the valuation of these companies.
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